Small, private investors are to gain access to the commercial property market for the first time as a new breed of financial products become available in 2004. These will be attractive to those who have done well out of the booming housing and buy-to-let market in recent years, says the Royal Institution of Chartered Surveyors (RICS).

However, the professional body that represents 110,000 chartered surveyors around the world, is warning investors to do their homework first and has issued new guidelines to professionals offering advice.

Graham Chase, RICS commercial property spokesman, said:

“People may feel comfortable with property as an asset class through experience with the residential sector but the commercial market has its own dynamics and, while offering great opportunities, it also holds particular risks. At the moment we know that many financial advisers are not qualified to give advice in this area.”

Up until now, the perception of the smaller investor has been that commercial property is out of reach and they have contented themselves with the buy-to-let residential market, which many believe may be running out of steam.

There are an increasing number of financial products, or vehicles, which allow private investors to enter the market with hundreds rather than millions of pounds, by buying a share in an individual property or managed portfolio.

Understanding commercial property investment: a guide for financial advisers is available from RICS website: www.rics.org